How the Bitcoin Australian Tax Office guidance affects BTC Markets

In August the Australian Tax Office (ATO) released a guidance paper on the tax treatment of Bitcoin transactions and other cryptocurrencies. We have provided answers to some commonly asked questions.

Will BTC Markets be adding 10% to the total value of each trade?

The primary business of BTC Markets is to provide an exchange platform for users to buy and sell Bitcoins off each other. BTC Markets does not buy nor sell Bitcoins in its own right therefore we are not liable to collect GST on the value of Bitcoins traded on our marketplace.

I have a business account do I have to pay GST?

Businesses who purchase Bitcoins through our marketplace may be liable to pay GST on the full value of bitcoins when they are sold. These businesses may also be entitled to claim GST on this purchase. Businesses are recommended to seek their own independent tax advise.

Is BTC Markets going to collect GST on trading fees?

BTC Markets will soon be collecting GST on trading fees for Australian traders. Please be advised this is just on the trading fees and not on total trade value. Below is an example only of 1 Bitcoin traded with a value of $1000 and a trading fee of 0.935% inc GST.

Trading Fee: $8.50
GST:  $0.85
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Total inc GST:  $9.35
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I’m an international trader do I have to pay GST?

If you are from outside of Australia your trading fee will not include GST.

Will BTC Markets issue tax invoices?

In the near future BTC Markets will issue tax invoices when it’s required and when requested.

 

Please note the information provided above is general in nature and does not take into consideration your personal financial situation. It is for educational purposes only and does not constitute formal financial advice. Remember, the value of any investment can go down as well as up. Before acting, you should consider seeking independent personal financial advice that is tailored to your needs.

 

Best Regards,

The BTC Markets Team

 

 

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